The 2025 Qingdao Venture Capital Conference held a forum on "ESG financial reform and green finance innovation" on Friday. It focused on integrating ESG principles into financial products and investment decisions to advance green credit, funds, and carbon-neutral investments, particularly in emerging areas like unified power markets and new energy storage.

A key highlight was the emphasis on China's ambitious new climate targets. Lai Xiaoming, chairman of the Shanghai Environment and Energy Exchange, told attendees that green investment is now a primary focus, citing China's 2035 goal for non-fossil energy to reach over 30 percent of consumption and new energy installation capacity to hit 3.6 billion kilowatts, more than six times the 2020 level.

Yin Hong, vice president of the Modern Finance Research Institute under the Industrial and Commercial Bank of China, outlined essential steps for institutionalizing ESG, including embedding it into governance, investment policies, and creating classification systems for differentiated financial products.

Lin Shan, deputy director of the International Finance Center under the Ministry of Finance, strengthened the synergy between green fiscal policy and finance, disclosing that over 2.3 trillion yuan ($322.3 billion) had been invested in green development from 2021 to 2024, with continued support planned.

The discussion underscored a strategic shift towards a market ecosystem, where financial innovation is fundamentally driven by sustainability and climate goals.

(Cover via 2025 Qingdao Venture Capital Conference)